The life and times of an Arizona Investor

This will be my personal journal to document my failures and successes during my real estate experiences in Arizona. All stories, thoughts, and successes will be documented..

Thursday, March 31, 2005

Private money broker is a no go..

What a disappointment. I've been working with a private money broker for the last two weeks. Yesterday, we finally sat down for the second time to discuss his offers from his lenders.

Here's my criteria and the numbers that the broker agreed to be working to:

Interest rate: 9-12% 5-6 months
Loan up to 100k

Here's his offers:

Offer #1 Loan up to the equity in one of my rentals. So, 50k, with a payment of $371 that should be a interest of 10%

What! I don't want a HELOC, I want a private loan..

Offere #2 15% up to 60k

This doesn't work! I don't need a broker for this rate..

Offer #3 18% up to 75k

This doesn't work! I don't need a broker for this rate..


This guy wanted me to sign paper work before this meeting and pay him $200 to set this up. I'm glad I told him I wouldn't pay him anything until I get a commitment from a lender for the given interest rates.

I can't believe this guy had the balls to present this crap! This doesn't work for me, for the current deal I'm working, I need about 80k.

What a disppointment.. I will not give up, good private moeny lenders are out there, you just have to find them. This guy turned out to be bogus.


Good investing!
|| Bginvestor, 5:45 AM || link || (1) comments |

Tuesday, March 29, 2005

Private Money is the way to go!

I wanted to show you the power of using private money. Private money is not really hard to get and everyone should have it as another tool under their REI toolbelt.

Below is a fix and flip deal that I will pull the trigger on if the property is still available. I'll be getting a loan at 70% After Repair Value (ARV).

Advantages:


Disadvantages:

The Return on Investment (ROI) goes through the roof using private money since you initial costs are reduced. This also allows you to use your resources for holding and fixup costs.

Private money can be used for not only flips, but for buy and hold as well. After you fix the place up, you could refi and pay off the private money loan. You should be able to easily refi at 80 or less and depending on your market, it may make financial sense for a rental. This is an option that I am going to pursue.

Good investing!



Posted by Hello
|| Bginvestor, 6:43 AM || link || (3) comments |

Monday, March 28, 2005

Status on short term goals 3/27

Ok, so here's my progress on last week's goals

  1. Generate new pre-foreclosure list

The assessor's website was down for several days which threw a wrench in the preforeclosure lists. I did not get the list completed!

  1. Door Knock at least 10 houses

Nope, not this week.

  1. Drive around town and locate new area to put up signs

Completed, I have a new farming area that I need to work over soon!

  1. Interview three candidates for helping me put up signs

Done! I have hired a college kid that is putting up signs for me. He'll work everyother weekend and distribute many signs.

  1. Meet broker for private money

Done! The private money turns out to be a local mortgage company, so they required a loan application. This is not how it works for private money, especially when I agreed to cross-colaterialize. However, if I can get a private money loan for 10% , its worth it!

  1. Fax or write to either probate attorneys or more appraisers (Birdddogs)

Done! I wrote to 15 probate attorneys. I plan on writing up a Month's review of the business, so I have lots to say about this topic..

  1. Ask for updated REO list

Nope!

  1. Get status on divorce list

Nope!

  1. Get on Homevestor's wholesale list

Called Homevestors. He told me he'll call me back , but never did. I hate working with unreliable people, and the sad thing is a lot of people are unreliable!

  1. Call All FSBO's

I did several of those. I like calling these guys because it keeps me fresh with the important pre-screen callers from my advertising.

  1. Generate letters for "dirty 30 list" These are houses that I drive by that are worn out and may be potential deals. Its worth writing letters to these people. Its essentially finding a diamond in the rough

I'll work on this today. I found several houses that looked worn down on large lots. If I could pick any of these up, I could potentially build another house on the lot and make serious money..

So overall, not a bad week, but its abvious that I ran out of time since not all my goals were completed.

Good investing!

|| Bginvestor, 6:09 AM || link || (1) comments |

Saturday, March 26, 2005

Using scripts will make you succeed!!

I've noticed lately that several people have been visting my blog frequently based on the number of hits to my site. It's amazing how the internet can bring people together. Its like we have a small REI network via the internet. So, to keep it more interesting, I'll be sharing some of the important lessons learned that I have figured out in the last couple years.

I wanted to share my thoughts on using scripts.

I've studied a course that heavily advocates using scripts. In my business, scripts can be used everywhere and I encourage other people to focus on them. I use three different scripts for screening sellers from general incoming calls, door knocking, and presentating an offer. If you do something over and over, scripts is the logical thing to do. Its allows you to make sure you say the magical phrases thats so important. And its a great way to memorize answers to seller's objections!

For example, after I'm done talking with a seller on the phone, I should know the following: the basics of the property, seller motivation (1-10), does he want a quick sale or top price, what he needs from the property, and what terms he is willing to work with (subto,l/o,cash,s/f,etc..). The script effectively asks the questions in the correct order.

Good investing!
|| Bginvestor, 7:01 PM || link || (1) comments |

I should have done this a long time ago!

Today, I trained a kid to put up signs in my farming area. I should have done this a long time ago! We put up 80 signs in 5 hours. We put them up mostly on the ground, although about 10 went on telephone posts. This took about half the day, and I paid the kid $50 bucks.

Is it worth paying 50 bucks so I can spend more time with family and structuring deals? Absolutely! Let's see what shakes out.

Right now, I have one hot lead that I'm trying to structure a deal. I'll post when I get more details.

Good investing!!
|| Bginvestor, 6:47 PM || link || (0) comments |

Thursday, March 24, 2005

Offer #5 is dead..

The owner wasn't interested in putting any of his money into the deal. I would needed $$ to solve the termite problem.

Deal is dead. However, I'll call some guys and see if they are interested.

There's always something around the corner. I got a call from a gal that owns a condo just a few doors down from mine. I know this neighborhood really well. A sand wich lease option will great work well if she can hold on to her equity. Or if she'll go low enough, a cash offer will do it too.

Something happen to her daughter so I'm waiting for a few days before scheduling an appointment.

Good investing!
|| Bginvestor, 5:29 AM || link || (0) comments |

Tuesday, March 22, 2005

Termites! Investors worst enemy..

Offer #5 - The owner left the front door unlocked yesterday, so I had plenty of time to go through and generate the list of repairs. I had allowed for a $2500 repair allowance which needs to be accurate! (I'll post all of the numbers tomorrow)

Hanging from the ceiling, was evidence of termites! Its strange looking, imagine a string made of dirt hanging from the ceiling which was about 12" long! There were other spots was well.

Ok, so now since I was in termite mode, I went around the perimeter of the house and noticed about 20 dirt tunnels going from the ground up into the house!! There were tunnels from every side of the house!

The east side was hit the hardest and the exterior panels on the bottom edges with all soft. I thought this was water damage at first , but it was obvious that termites had attacked it!

So, is this a deal killer? Probably... Fixing the exterior panels and repainting already puts me over budget, and thats assuming that there's not much damage from the wood structure in the walls. I know that there is termites 10 feet into the house going from the ceiling to the floor.

If seller wants to contribute $$, than maybe its still a go. Stay tuned!
|| Bginvestor, 8:02 PM || link || (0) comments |

Monday, March 21, 2005

Answering Shaun's questions.

I appreciate shuan's questions and here's some responses. Shaun got me thinking about this one again so I looked at the MLS. Boy was I surprised! 5 properties 1100-1500 sqft houses selling for 135k-150k! This one is 1500 sqft.

There was alot of pictures and all of these houses are in top selling conditions. Some had new flooring and kitchens. This house is a rental so its beat down a little, but mostly cosmetic.

Here 's the answers to your questions Shaun.

1) Can you sell this deal to someone else? Absolutely, I was telling him that I would touch bases with him on Wednesday to give me time to either birddog it out to someone else or assign it.

2) What if you sell without a Realtor? I could, however, not having the visibility of the MLS filters out a lot of potential buyers. If I want to sell quickly, I would want to use a realtor for maximum results.

3) You've already done the hard work of getting the seller to agree to a subject-to deal. Why drop this now? I agree, if I can't use the lead , than I try and get a referral fee.

4) With the mortgage, fees, and repairs, the total debt is 109K. 6% commission on $125K is another 7.5K, for a total of $116,500. You've got $9.5K cushion in there, or $14.5K if you sell for the higher price. I need to add some attorney fees for land trust, holding costs, and there will be some closing costs (title report etc..) in addition to commision. IF I could sell the house for 125k than I could make 5k if everything goes perfect.

5) What's the monthly mortgage payment? $1180 PITI Monthly rent is $875

6) How soon can he move out? What's the average time to sell in the neighborhood? VACANT! It was a rental. I don't know the average time to sell in the neighborhood, I need to find out.

7) You could probably make at least $5,000 on this, easy. Assuming a 125k sales and everything is perfect, than 5k is obtainable.

Now, if I can sell this thing for 130k confidently, than I am in better shape. Based on the MLS comps, I should be able to do this.

I'm going to bring my handyman (fellow investor) to check a few things out. If good, I'm going to pull the trigger.
|| Bginvestor, 9:49 AM || link || (1) comments |

Sunday, March 20, 2005

Offer #5 Seller willing to do Subto

I successfully negotiated a subto deal today, however, I won't do it because its too risky. If you don't know what a subto deal is, look for my thread on buying strategy of the month (Feb).


The numbers:

ARV: 125-130k
Owes: 103k
Arrears (HOA & late payments): 4k
Repairs needed: 2k

The seller has pain. His adjustable rate mortgage suddenly went up and now he's over $300 a month in negative cash flow. He's missed two payments.

I could take over subto, and since his payments are high, I would fixup and sell immediately. However, the problem is if using a realtor, the holding costs and commissions would not make this a deal. Oh well!

Negotiating with him was interesting. At first, he was saying , " I am not interested in deeded this property over to you." By the end of the conversation, he was willing to do it. Its amazing the power of establishing repoir and being patient. His pain was the payments and I had a plan to solve it. Too bad he didn't have an extra 10 k in equity!

Good investing!
|| Bginvestor, 6:55 PM || link || (2) comments |

Friday, March 18, 2005

Next week's goals

Ok, gets time to gets things rolling.. Here's the plan for next week..

  1. Generate new pre-foreclosure list
  2. Door Knock at least 10 houses
  3. Drive around town and locate new area to put up signs
  4. Interview three candidates for helping me put up signs
  5. Meet broker for private money
  6. Fax or write to either probate attorneys or more appraisers (Birdddogs)
  7. Ask for updated REO list
  8. Get status on divorce list
  9. Get on Homevestor's wholesale list
  10. Call All FSBO's
  11. Generate letters for "dirty 30 list" These are houses that I drive by that are worn out and may be potential deals. Its worth writing letters to these people. Its essentially finding a diamond in the rough

Good investing!

|| Bginvestor, 1:41 PM || link || (3) comments |

Thursday, March 17, 2005

Can you confront your neighbor that he's in foreclosure?? Door Knock #13

I just got back talking to my neighor about his house in foreclosure. It posted a notice over a month ago. This isn't a house down the street from mine, this is the guy to left of me! I don't know these guys very well.

He bought the house last year in August for 212k and put only 1k down. He must of made just a few payments before the pain was brought on..

I knocked on the door and it was the husband. The wife actually owns the house. I wasn't sure if he would be upset, but turned out he was very nice. My intro was completely different, but came across ok.. He told me that they cut some checks a couple of weeks ago, however, the notice of sale is not terminated. He asked my business card and said he'll talk to his wife.

I'm actually glad that they may have solved their problem. I snooped a little and found out that she had two previous notice of sale postings, so the outcome is not good. She is a mortgage broker, I don't know what he does. Hopefully, it works out for them, if not I'll buy it (For a discount of course).

Good investing!!
|| Bginvestor, 6:46 PM || link || (0) comments |

Wednesday, March 16, 2005

You make more money by saying "no"

I remember a talk from a multi-millionaire that said , " You make more money by saying no, than yes"

How true! For beginning investors, its critical to have successful deals or it may be your last. There's just not enough room to make severe mistakes! So far, we haven't been one of them!

After submitting 20 bids, and not buying a house, how easy is it to just buy one that is margin? Don't do it.. Wait for the good deal, it will come if you market properly.

I've received several calls this week on marginal deals with 90 LTV. It just doesn't work for me. I buy houses two ways, its a rental or a flip (I've never be able to find deals that I could wholesale). If I can't get cashflow , I don't buy the rental. If I can fix up the property and make money allowing for buying, holding, and selling costs, I pass as well.

I've heard too many investors that over leverage themselves to buy property. I'll be talking to one of these guys this weekend, he has two houses with a negative cash flow of $300 a month (thanks to rising interest rates). Don't let this happen to you!!
|| Bginvestor, 7:06 PM || link || (1) comments |

Status of goals for week ending 3/18

It's been a good week. Here's the status of my goals from last week.

Actually, I put up at least 40 in my farming area. So far, all the signs I've placed on poles are still there. That's a miracle! If placed on the ground, I would expect them gone in a few days!! This has been a lesson's learned..

Done. Faxed 10 and sent 20 letters..

This has been interesting. I put up two signs asking for "Drivers wanted, putting up signs" I've received 5 calls and everybody is interested! I think giving them $10/hr is a great deal and people are very excited about it. I'm going to interview three this weekend. And get started. This is going to jump start my REI business.

Two of the three were sold. I looked at one with realtors #1. Nice guy, however, I can tell he's not a guy that has experience working with investors that fix and flip. After discussing my offer, he thought it was a complete low ball. He pointed out numbers to me and he thought would have worked, but neglected holding costs, selling commission, etc.. I will place a bid on this property, but not today. See below..

Realtor #2 is having problems getting access to the database to get this information? Is she pulling my leg? Who knows.

Done. This has been very interesting.. There's several levels of private money. There's national , big corporations, brokers that have connections with individuals, and people that will lend from their IRS or private account. I'm finding that rates and terms are very different for each. The best type of money lending is finding a doctor or attorney with money that is willing to make a good interest on their money. I'm going to give this broker a shot. So far, he is saying that he negotiating 9-11% for a 5-6 month loan. That's not bad. if I can get lined up with him this week, I will be placing a bid on the house. Stay tuned..

Called on several no bites..

Done.. I have a link to his blog. Basically, he gives some hardcore information for FREE. Thanks Mark!

|| Bginvestor, 11:28 AM || link || (2) comments |

Tuesday, March 15, 2005

Buying strategy of the month (March)

I think Rich Dad, Poor Dad has said that you'll be a more successful person if you surround yourself with successful people. Well, I'm trying to emerge myself with them!

Tonight, a friend (32 years old) of mine drive me around and showed me his REAL ESTATE. Over here, I bought this one, and sold that over there, and here's a house a friend made $200k, and this is want I can do with this one and on and on. It was totally cool to see how this successful investor was buying property.

Here's a great strategy that you should put under your tool belt.

Strategy:

Buy a house in a strong rental area that has a huge lot! The investor can now split the lot and build more houses for cash flow or resell. Actually, you may not even need to split the lot.

The numbers work great because you can build a house and get it to cash flow easy or resell for huge profits. My friends are building a cookie cutter house (3 bed/2 bath) for 75k and selling them for 135k!

How much work are they doing? Finding the deal, and making sure the contractor is doing his job. That's it! The profits are huge for the amount of effort. Its crazy!

Its easy for these guys because they have a contractor lined up, house plans approved, and know how to talk to the county about zoning issues. However , you can figure this stuff out as well, its not rocket science!

Are these deals easy? These guys are doing it just using the MLS....

I'm actually, going to start throwing out some signs in the central area to attract potential sellers with big lots.

You should check your market for these same opportunities...

Good investing!!
|| Bginvestor, 8:17 PM || link || (0) comments |

Monday, March 14, 2005

Getting a line of credit for your LLC..

One of the REI blogs mentioned that you could get a business line of credit for your LLC without having it go on your personal credit.

We'll American Express does not offer this, they confirmed that all cards will be listed on your personal credit report. Bummer!

There's a few more to try, but wouldn't it be nice to have about 30k available at anytime with a low interest and attached to your LLC ?

I need to do more research, I've heard it can be done..
|| Bginvestor, 5:18 AM || link || (3) comments |

Sunday, March 13, 2005

The wife threw in the towel!!

Just a few hours before we were suppose to meet the realtor and check out this high potential REO, my wife decided its just not worth it and said to cancel the appointment since she is not going to live there! Arghh!

I didn't write down the numbers in the previous post, but we would have placed a bid for $200-$210 and have a ARV for 285k! It would have been a pocket listing and nobody else to compete with.

Any body want a wife for a discount? (Just jokin..)

So, one thing for sure is that another deal is just right around the corner! Actually, it took just a few seconds. My wife said, what about the preforeclosure next door? (About a month ago, I was generating my notice of sale list when I noticed that my neighbor was in foreclosure!)

After thinking about it, I said yeah, let's go for it...

Details:
Seller bought: $212k in Aug 2004
Downpayment: Only 1k w/ conventional
Comps: $220k

Can you say short sale? When I saw this come across my desk a month ago, I decided to pass this up because the numbers don't look very good and it would be a tough discount. However, if we could get into the property for a decent price, we can turn own current home into a rental and have an extra bedroom.

This one is going to be tough, I have only 2 months to get this done. The stars and moon will need to align.

The banks will be the toughest challenge. If we could get this for 180K , it a done deal. Since this is a primary residence, my criteria can go up to 90 LTV.

The benefit of this would be the extra rental house coming from the deal.

I just checked the county records, and they are still in foreclosure, so let's see if the neighbors want to do a deal! Stay tuned..
|| Bginvestor, 5:17 PM || link || (4) comments |

The wife needs to be brought into the deal. She's already stressin.

My wife and I are team in most things that we do in life. However, in REI, she usually takes a back seat because she is not interested in the business that much. Its funny, she loves the appreciation in our properties, she loves the security of real estate, and she realizes its been the best type of investment we can make, but she doesn't love working the REI business like I do. Mostly because she is busy with her life taking care of everyday stuff.. And to me thats fine, she does do all of the books, so thats a huge help..

Anyway, I've needed to bring in her into this one deal and its been a little frustrating because if we do it, we may want to move into the property. One great technique for increasing wealth is to upgrade your property several times. There's a problem.. She doesn't like to move, however, she told me if I can get a bigger house with a pool , she'll do it.

So, when I saw this house yesterday, I thought, "ok, this is the opportunity we're looking for"

Our house right right now:

3 bed 1770 sqrt, 1995 built,2 car, no pool, decent back yard

Foreclosed property:

4 bed, 2900 sqrt, 2000 built,3 car, nice pool, big yard

Ok, here's a simple question. Which house would you be more interested living in??

Well, my wife is more interested in the existing house because its in a better school district. We don't even have kids. ArGHH!

Its funny, I thought she would be jumping up and down for this property and she's luke warm. I showed this property to her yesterday and she said if we could get a good bid, than we'll buy it. After calling up the realtor and saying that we are interested and we WILL place a bid, she than tells me she's luke warm and she would rather stay in this one..

Women!

We decided to go ahead and look at the property inside. If she gets more excited about it, we'll talk more.

You know, if we move into this property and she doesn't like it, I'll be hearing about this everyday!

My philosophy in real estate is that its just a house, and I would live in any house if it makes me more money. My wife is more emotional about it.. The bottomline, I may have to dump this type of investing "strategy" in my business. She needs to know that she is limiting our financial success in our life goals which is to retire young and spend more time with our future kids.

Stay tuned...
|| Bginvestor, 5:32 AM || link || (0) comments |

The power of networking..

I've joined a real estate club several months back. At each meeting, we all fill out a postcard and than proceed to introduce ourselves to people that we have not met before and state who we are, what we do, and what we need for our business.

This is networking in its purest form and its power because we need to know people that know things that we don't.

So, I've been talking with this REO realtor for about a week now. (Actually, I've met her over a year ago, she did a BPO on a house that I was doing a short sale, and she screwed me up because the BPO was way high). Although I was after a divorce list from her, the data was not currently available, but than she began to talk about a house that she did a BPO on yesterday.

This property has potential! Its a 2 story, 2900 sqft, 2000 built , with a 3 car garage and pool. It's in a good neighborhood and its a complete fixup. These people did not treat the property well. This means discounts from the banks!

Wow, this property is so new to the banks that they don't even know how much they are going to price it. Bottonline, I'm going to be able to place a bid on it before ANYONE else! Cool.

We saw the outside yesterday and today will look inside. If we place a bid on it, I'll list the details.
|| Bginvestor, 5:14 AM || link || (0) comments |

Saturday, March 12, 2005

Next week's REI goals.

Writing down goals has been one of the best things I've done to be successful. Not only does to mentally "put thoughts into action", but allows me to track performance.

I have short term, mid term , and long term goals. I'm sharing short term right now.

Next week's goals:
  1. Distribute 30 bandit signs to farming area
  2. Fax/write to 30 local appraisers asking them for referrals
  3. Setup advertising to attract people willing to distribute my bandit signs for $10/hr
  4. Meet with any potential sellers
  5. Look at three REO properties and meet REO realtor
  6. Get divorce list from REO realtor
  7. Talk to 3 private money lenders for fix and flip funding
  8. Call every FSBO sign I come across
  9. Listen to all of Mark's Ijal's teleseminars

Ok, thats enough!

Good investing

|| Bginvestor, 10:27 AM || link || (2) comments |

Asking for the key code did not work!

Asking this realtor for the key code did not work. I may have made a mistake by not establishing repoire with him. I'll try again later..
|| Bginvestor, 10:25 AM || link || (1) comments |

Friday, March 11, 2005

How to get the key codes for REO houses..

This is credited from Mark Ijlal's blog..

I want to see REO property at my convenience, not the realtor's convenience so I asked for the key codes...

This is my email today..

"
Dear Realtor,

I got caught up the last couple of days, so I have not seen XXX., XXX, or XXX yet. I would like to go and check out the houses, but we don't want to waste your time, so instead of meeting you there and wasting your valuable time, why don't you give us the lockbox code and we promise that we will lock the door on the way out!"

Works for Michigan's investors.. Let's see what happens!

Good investing...
|| Bginvestor, 11:30 AM || link || (0) comments |

Wednesday, March 09, 2005

This makes my day.. lol..

I posted a birddog ad on one of the REI sites..

This was my firsy response..

"Hello out there,
I am a farmer in **** and I have some bird dogs available for sell at the rate of $300 (shipping) fee included.If you are still interested you can write or call at **** for more information and for pictures. Thanks"

LOL!!!!

Good investing..
|| Bginvestor, 5:53 AM || link || (0) comments |

Monday, March 07, 2005

Do you want quality comps for free??

OH YEAH, DO YOU WANT FREE COMPS? JUST ASK A TITLE COMPANY. I called up fidelity title and asked for access to their research resouces. They hooked me up with free access to DATAQUICK! Shit! two years ago, I paid $500 dollars for mailing lists and comps. I now get it for free.. Arghh!
|| Bginvestor, 7:53 PM || link || (0) comments |

What Arizona foreclosure lists look like..

Ok, so I found three of the top REO realtors in town. This is part of my birddogging plan to bring more leads my way..

One realtor sent me a foreclosure list for free (from Foreclosure world). Who needs to buy a list when you can get one for free? I don't know if this is a high quality list or not, but the interested thing was the houses were not listed on the local MLS? (mental note to ask the realtor)

Ummm.. this may mean less competition..

Actually, there was only 8 houses out of 57 listings. The rest was pretty much manufactured houses in the range of $50k to $80k. wow! Do you want to buy a mobile that depreciates? Come to Arizona! In that price range, I just don't see it happening...

However, there were a few houses that caught my eye. I'll use my valuable time to drive by and check these out tomorrow.
|| Bginvestor, 7:43 PM || link || (0) comments |

Philosophy of REI success..

Disclaimer: I'm not a guru! I have done short sales, subto's, and conventional deals, but I still don't consider myself one since I'm not yet a millionaire. So here's my 2 cents worth..

After spending some time getting my business fired up again (it needed a big kick in the a$$), I was pondering the basics of REI. What is the essence that makes one investor flourish and the other fail. What is the secret to success.

Since I'm an engineer, this equation suddenly popped in my head:

SUCCESS ($$) = TIME*LEADS*OFFERS

(ok, so the units don't work out but you get the point) The variables are multiplied by each other so the larger the variable, the larger the success.

Time: The amount of time you are actively working REI in every aspect.
LEADS: The amount of solid leads that are worthy of an offer.
OFFERS: The amount of offers you make on solid leads.

Wow is it that simple?? I think it is.. And I think the successful investors are the ones that are able to maximize all three at one time and do it well.

For those who are interested, these are my three VARIABLES:

TIME: Time is limited for me since I have a full time JOB. But that doesn't mean I can't be a millionaire in a few years. It does mean that I have to focus my time to maximize LEADS and OFFERS. This means systems need to be in place. And I do have systems in place.

LEADS: A few years back, I noticed that marketing would be very important to my business. The best scenario for us REI'ers is to have motivated prescreened sellers calling us all day, everyday. This is what I'm doing to accomplish this.

All of these items are in various stages of success and failure.

OFFERS: I made 5 unsuccessful offers in Jan. None in March (pathetic).

This has been a good excercise for me because I can now see what my weaknesses are. This will change quickly.

Good investing!

|| Bginvestor, 10:56 AM || link || (1) comments |

Sunday, March 06, 2005

Quote of the day.

Here's an awesome quote. I think I read this from Steve's REI Blog

"Failure cannot cope with persistence"

Persistence has gotten me many things in life. Right now, I just want to buy another house! I went out this afternoon to do more door knocking and I distributed bandit signs as well.

Bandit Signs: Half of them went on telephone poles. This is actually the first time I've ever done this. The signs look much better at 7' from the ground! I hope this increases the time before they get ripped off.. Its a necessary evil those bandit signs and I really should take advantage of it since my town tolerates them. I've been throwing signs out for over a year now and only one part of town has ever called me. I may get some calls from the telephone company, I'll just have to see.

I threw about 15 signs out in strategic locations. Actually, that's not very many, huh? I think its time to hire someone to do this. My cell has been dead for weeks.. Its just pathetic!

More door knocking:

Door knocking #9 This house had a locked fence with a mean looking dog in the front. Should I go for it? Hell no! I left a door hanger off the mail box. Hopefully they pick it up this evening since its raining today. Mental note (do a reverse lookup and try and call)

Door knocking #10 Nice gal, she is going to pay pay off the arrears and get the loan current again. As always, left business card.. She said she's still going to cry aobut the situation. :-(

Door knocking #11 This was the girl friend of the guy that was in foreclosure. He was not there unfortuantely, she said however , that an another investor said their only option was to sell the house! He is currently talking to a friend for advice. I was trying to be real nice and let her know that I had a list of options that she could explore before selling. Hopefully, he'll call me back. They usually don't.. And as always, I forgot to ask for her number!! I've done this like 5 times in a row. I'll learn the hard way!

Door knocking #12 Here it is.. This is lady that is trying to save her house, but probably won't be able to.. She just paid an attorney $900 dollars and she doesn't know where she stays on the whole process.. After talking with her, I don't think she will be able to make payments on "reorganizing" the debt. Her daughter is saying sell the house. I think she should sell, because she has a lot of equity and she could start over.

She owes 50K and the house is worth over 120k. Since she has so much equity, I will probably cash her out with a loan and she can walk away with quite of bit of cash. If I could buy it at a decent price, than I'll have several exit options.

This property is special because the lot is huge. She said that her daughter had a double wide on the lot (before the banks took it away from them). So I could split the lot and build a new house. I could make a lot of money on this one!

I will find out soon if she wants to sell and how much she needs to move. Hopefully, we can work something out! Stay tuned!

Good investing..
|| Bginvestor, 4:03 PM || link || (0) comments |

I won a drawing at the PGA tour!

There was a tent that had many vendors advertising products. I ended up talking with this nice lady from Corona de Tucson realty about foreclosures. We were chatting about Hud homes and was letting her explain to me the auction process (even though I already know). After chatting , she suggested that I apply for their drawing. She wanted to get my contact information so I suggested stampling my business card to the ticket.

Well, I got a call from her yesterday saying that I won the drawing!! There was only one winner, me and I get $100 worth of coffee!

This is interesting, why did I get drawn from the many,many tickets. I bet its because of my business card that made it different from everyone else!

Remember, market shamelessly!

I'm going to take this opportunity to take appraisers, private money loan officers, and realtors to coffee!

Good investing!!!
|| Bginvestor, 9:22 AM || link || (0) comments |

Saturday, March 05, 2005

Direct mailing #3 foreclosure lists

I decided to send postcards to my foreclosure lists instead of letters. Last year I was doing letters, and it was very time consuming! I did these the right way, hand writing the letters, using regular stamps, using a series of 5 letters, etc.

I found the response rate was lower than expected.

But, actually, I did a couple of deals from letters now that I think about it!

I decided to experiment with postcards, its cheaper, and way faster. My time is becoming more critical to me, and if I don't use postcards, I probably wouldn't get my letters out this year.

Yesterday, I send 50 postcards from my foreclosure list.

FYI - # of foreclosures in this city are not nearly as many as Phoenix , Detroit, etc.. We get about 200-250 a month. Thats plenty to keep me busy though!

Let's see what happens!

Good investing
|| Bginvestor, 6:40 AM || link || (1) comments |
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